Axmouth and Branscombe leases on residential deteriorating in value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Axmouth and Branscombe will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancers that we work with undertake Axmouth and Branscombe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Liam owned a 2 bedroom flat in Axmouth and Branscombe being sold with a lease of a few days over fifty eight years remaining. Liam informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Liam to invoke his statutory right. Liam procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Spring we were contacted by Dr Isobel Taylor , who owned a ground floor apartment in Axmouth and Branscombe in July 1998. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical residencies in Axmouth and Branscombe with an extended lease were valued around £275,000. The mid-range ground rent payable was £65 billed per annum. The lease ran out in 2094. Given that there were 68 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
In 2011 we were approached by Mr and Mrs. T Lambert who, having bought a first floor apartment in Axmouth and Branscombe in November 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Axmouth and Branscombe with 100 year plus lease were worth £208,600. The mid-range ground rent payable was £60 billed every twelve months. The lease came to a finish in 2083. Having 57 years remaining we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus professional charges.